Donate by December 31 and claim your Arizona tax deduction

Donate your car in Arizona by December 31 and you can deduct the sale price on this year’s taxes. Desert Wheels handles IRS Form 1098-C, free towing, and all paperwork for you.

Donate your car in Arizona by December 31 and, in most cases, you can deduct the sale price on this year’s federal taxes. With Desert Wheels, vehicles that sell for over $500 generate an IRS Form 1098-C, which we mail to you after your car sells. That form shows the actual gross sale amount — that’s what you can usually deduct, not the Kelley Blue Book value. If your vehicle sells for $500 or less, you’ll use our written acknowledgment and may deduct up to $500 or your car’s fair market value, whichever is lower. You must itemize on Schedule A to claim the deduction, and your pickup confirmation is proof you donated by December 31.

Desert Wheels partners with Heritage for the Blind, a real 501(c)(3) supporting people who are blind or visually impaired. We arrange free towing anywhere in Arizona — from Phoenix, Scottsdale, Mesa, and Chandler to Tucson, Flagstaff, Yuma, and smaller communities across Maricopa, Pima, and Pinal Counties. No smog check, no repairs, non-running cars welcome. Our 2-minute online form or quick phone call locks in your donation date, and we work Monday–Saturday to schedule fast pickups so you can meet the IRS deadline and still enjoy your holidays.

Your year-end donation timeline

1

Start the 2-minute Arizona donation form or call

2 minutes

Submit our secure online form or call to donate from anywhere in Arizona — Phoenix to Tucson, Glendale to Gilbert. We collect basic info about your vehicle and contact details. The date you complete this step and agree to donate is the key date for your tax year.

2

Confirm pickup time and lock in your donation date

5 minutes

Our towing partner calls to schedule free pickup, usually Monday–Saturday. Once you confirm, your donation date is locked in. Keep any email or text confirming the pickup request as proof you donated by December 31 for this tax year.

3

Free pickup anywhere in Arizona, even non-running

1–3 days

We tow your car at no cost from your home, office, or shop in places like Tempe, Peoria, Surprise, or Oro Valley. No inspection or repairs needed. The tow receipt is additional evidence of your donation for your records.

4

Vehicle is sold and paperwork is processed

2–8 weeks

Desert Wheels arranges the sale of your vehicle. When it sells for more than $500, we prepare IRS Form 1098-C showing the gross sale price. If it sells for $500 or less, we prepare a written acknowledgment with the required IRS language.

5

Receive your tax documents and file your return

After sale

Within 30 days of the sale, we mail you IRS Form 1098-C (over $500) or a written acknowledgment (at or under $500). You use this plus Schedule A when filing. Consult your tax advisor to apply the deduction to your federal and, where applicable, state return.

Year-end tax deduction facts

Deduction equals sale price, not book value

For vehicles that sell for more than $500, the IRS generally lets you deduct the car’s actual gross sale price listed on Form 1098-C, not the Kelley Blue Book estimate or your purchase price.

Form 1098-C for vehicles over $500

When your donated vehicle sells for more than $500, Desert Wheels sends you IRS Form 1098-C within 30 days of the sale. This form shows the sale amount and is your official proof for claiming the deduction.

Written acknowledgment at or under $500

If your vehicle sells for $500 or less, we send you a written acknowledgment instead of Form 1098-C. You may deduct up to $500 or the fair market value, whichever is lower, based on current IRS rules.

You must itemize on Schedule A

Car donations are claimed as charitable deductions on Schedule A of your federal return. You only benefit if you itemize deductions rather than taking the standard deduction. A tax professional can confirm what’s best for you.

December 31 controls which tax year

To claim your deduction for this tax year, your donation must be completed by December 31. The key is the date you donate the vehicle, not when you file. Keep your pickup confirmation as proof of the donation date.

FAQ

If I donate on December 31 in Arizona, can I still deduct it this year?
Yes, if your donation is completed by December 31, it generally counts for this tax year, even if the car is sold and your Form 1098-C arrives later. Complete the online form or call and confirm your donation by December 31, and keep the confirmation and tow receipt for your records.
How much can I actually deduct for my donated car?
If your vehicle sells for more than $500, you can typically deduct the actual gross sale price shown on Form 1098-C. If it sells for $500 or less, you may deduct up to $500 or the fair market value, whichever is lower. The Kelley Blue Book value alone does not control your deduction; the sale price does in most cases.
When will I receive IRS Form 1098-C or my receipt?
After Desert Wheels arranges the sale, we must send IRS Form 1098-C (for sales over $500) or a written acknowledgment (for $500 or less) within 30 days of the sale date. The form may arrive weeks after year-end, but as long as you donated by December 31, you generally deduct it for that tax year. Always confirm details with a tax professional.
Do I need to itemize to benefit from my Arizona car donation?
Yes. To claim a charitable deduction for your Desert Wheels car donation, you must itemize deductions on Schedule A of your federal return. If you take the standard deduction, you usually cannot add a separate car donation deduction. A tax professional or tax software can help you see which option saves you more overall.
What paperwork do I need to keep for my taxes?
Keep your initial donation confirmation, the tow or pickup receipt showing the date, and the Form 1098-C or written acknowledgment we mail you. These documents support both the date and amount of your deduction. Store them with your tax records in case the IRS requests backup. Your tax preparer may also want copies when filing your return.
Can I donate a non-running or damaged car in Arizona and still deduct it?
Yes. Desert Wheels accepts most vehicles, running or not, throughout Arizona. The deduction is generally based on the eventual sale price, even if the car is in rough shape. We still provide the required IRS documentation. You won’t need to pay for repairs or inspection — we tow it for free and handle everything with the auction or buyer.
Does Arizona state tax law change how my deduction works?
Your federal deduction rules are the same whether you’re in Phoenix, Tucson, or anywhere else in Arizona. State treatment can differ, so it’s wise to ask an Arizona tax professional or review current Arizona Department of Revenue guidance. Desert Wheels cannot give legal or tax advice, but we provide all the documentation your advisor will need.

Related donation guides

Donate Before Year-End
Donate your car before year-end →
December Deadline
December car donation deadline →
Before December 31
Donate your car before December 31 →
Donate your car to Desert Wheels in Arizona today and lock in your year-end tax deduction before December 31. Our 2-minute form and fast, free towing across Phoenix, Tucson, Mesa, Scottsdale, and beyond make it simple. Vehicles over $500 come with an IRS Form 1098-C; $500 or below receive a written acknowledgment. Proceeds support Heritage for the Blind, a real 501(c)(3). Don’t wait until the last minute—start your donation now so you can claim your deduction this tax season.

Related pages

Donate Before Year-End
Donate your car before year-end →
December Deadline
December car donation deadline →
Before December 31
Donate your car before December 31 →

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